EB-5 Program Extension Announced!
Another clean extension? On Monday, May 2, 2017, a bi-partisan omnibus spending deal was filed by Congressional Leadership to fund the government through September 30, 2017. An omnibus spending bill packages many of the smaller appropriations bills into one larger single bill. The more than $1 trillion funding bill will extend the EB-5 Regional Center Program until September 30. This will be a clean extension, and provides at least 5 months to attempt to strike a long-term deal for the EB-5 Immigrant Investor’s Program.
While this extension comes as welcome news for those investors and developers who were not able to file before the previous April 28 deadline, the next 5 months still maintain some uncertainty in the industry. Despite last minute attempts by the judiciary committee members, DHS, and industry leaders to come up with a package that will address all concerns, there is still a lack of accord on how to reform the program. The key elements to reaching a resolution include creating legislation that maintains the integrity of the program’s initial purpose, benefits the American economy, and remains competitive amongst the other immigrant investor opportunities in the world. While it was reported that a deal was “close” over the last weeks, Congress was unable to come together which led to the September 30th extension.
DHS still stands by its most recent proposal of raising the minimum investment threshold from $500,000 to $1.35 million in Targeted Unemployment Areas, and from $1 million to $1.8 million for other areas. This, along with other DHS proposed reforms, could come into effect if no other reforms are agreed upon. As Congress is currently circulating draft proposals for the program, it will be crucial to monitor all attempts at reform over the next few months to see what changes and developments there are with the EB-5 Program. MSA will continue to keep you updated on all developments.